Molesworth Place, Dublin 2 The home of Dublin restaurant One Pico has come back on the market at a lower asking price of €1.5 million, ahead of an auction next week. The property, located at 5 and 6 Molesworth Place and 1 Schoolhouse Lane, was first offered for sale, with the restaurant in place as tenant, last October for €1.95 million. The classic French restaurant has resided at the address for c. 20 years. The property comprises a prominent two-storey corner site and extends to c. 2,190 sq. ft. net internal area and c. 2,990 sq. ft. gross internal area. The ground floor includes the main restaurant area, reception, kitchen and stores. The first floor comprises a private dining room (The Polo Room), an office, staff changing and WC facilities together with customer WCs. The property offers potential for mixed use development. Frossway Ltd, trading as One Pico Restaurant, is over-holding on an occupational FRI lease which expired in 2008 with rent of €110,000 a year. The lease covers number 4A Molesworth Place, the freehold interest of which is not included in the sale. The net rent receivable for 5 and 6 Molesworth Place and 1D Schoolhouse Lane is €99,000 a year, indicating a net initial yield of c. 6%. The Irish Times, 6th October
Dorset Street, Dublin 1 JLL last week advised it had completed the sale of the newly built, 163-guest room Big Tree Dorset Street Hotel in Dublin city centre on behalf of Dublin Loft Company for an undisclosed sum. Located close to Croke Park Stadium, the full-service, lifestyle hotel is contained within a 0.45-acre site and includes a large ground floor restaurant and bar, the traditional Big Tree Irish pub and an expansive rear terrace. The property was sold to a joint venture of MM Capital and RoundShield. The Business Post, 10th October
Otter House, Naas Road Offers in excess of €6 million are being invited for a landmark property on Dublin’s Naas Road. BNP Paribas Real Estate is handling the sale of Otter House, situated on the south side of the N7 Naas Road, just 300m from the intersection with the M50 Motorway and 8km from the city centre. The property is set to offer exciting redevelopment potential in the future, but in the short term provides investors with a stable investment return. It comprises a modern four-storey office building in use as showrooms and offices, together with a modern warehouse unit situated to the rear. Otter House is fully let and producing rent of €512,548 a year. Modern Plant, which has been in occupation for 45 years, occupies the entire showroom, mezzanine office and warehouse on ground floor on a new five-year lease from October 1st. The passing rent is €281,368 a year. The upper floor offices are let to Entain trading as Ladbrokes, Campion Insurances and FKM Engineering, with a combined passing rent of €231,180 a year. The property has frontage on to the Naas Road of about 51m and about 16m to Robinhood Road at the rear and the site is unusual in having dual access. The combined warehouse and office building extends to 47,062 sq. ft. on a triangular shaped site extending to c. 1.27 hectare (3.15 acres), of which the existing buildings only occupy c. 23%. The Irish Times, 6th October
Bank of Ireland branches, Ireland The Layden Group has brought to the market a Bank of Ireland branch in Ballina, Co Mayo, quoting €3.6 million, and a former branch in Whitehall, Dublin 9, quoting €1.1 million. The Whitehall branch, at 85-87 Swords Road, remains let to the bank until June 2022 at a rent of €112,000 a year. It comprises a two-storey double-fronted terraced building laid out as a banking hall on the ground floor (2,206 sq. ft.) with offices and a canteen (1,206 sq. ft.) on the first floor. The Ballina property is let to Bank of Ireland until 2032 on a 25-year full repairing and insuring lease from July 1st 2007, at a current rent of €216,081 a year, indicating a yield of 6%. The lease is subject to five yearly upward only rent reviews. It is a three-storey period building fronting onto Pearse Street, with a modern single storey extension to the rear. The Irish Times, 6th October
Churchtown, South Co Dublin An office development with a very attractive potential yield of 13.5% and capital value of c. €125 sq. ft. has been offered for sale in south Co Dublin. Block B of Nutgrove Office Park, Churchtown, comes to the market after a light refurbishment with a guide price of €5 million – some €2 million short of the price asked in June 2018, when it was offered for sale by another agent. Block B comprises three buildings that are available with vacant possession and jointly extend to c. 40,000 sq. ft. The buildings come with 45 surface car park spaces. Two of the three buildings, B2 and B3, which interconnect with block B1, provide a self-contained building of c. 11,000 sq. ft. Blocks B2 and B3 provide “plug and play” office space whereas Block 1 is complete to shell and core. According to the selling agents, with a little further work an overall rent in the order of €750,000 per annum is achievable, representing a net initial yield of more than 13.5%. The Irish Times, 6th October
Clonskeagh, Dublin 4 Trimleston House 1A and 1B, an interconnecting three-storey office building at Beech Hill Office Campus, Dublin 4 is being offered to the market for €7.25 million (c. €222 per sq. ft). Extending to c. 32,690 sq. ft., the property is let to Start Mortgages until January 15th, 2026. Block 1A comprises c. 19,640 sq. ft. of office accommodation over three floors and comes with the benefit of 54 car parking spaces. With an existing rent roll of c. €344,000 (€14.75 per sq. ft.) a year, Savills believes the building is “significantly under-rented” and thus presents a “unique opportunity to capture reversionary potential immediately with a rent review outstanding from January 2021”. Block 1B provides c. 13,050 sq. ft. of flexible, vacant space suitable for multiple occupation which will benefit from some modest refurbishment work. Block 1B benefits from 35 car parking spaces along with a shared cycle storage facility in place for both blocks. Following a potential refurbishment of Block B, and a settlement of the outstanding Start Mortgages rent review, Savills expects a net investment return in the region of 8.5% after standard purchaser’s costs. The Irish Times, 6th October
Earlsfort Terrace, Dublin 2 Iput has acquired a building adjacent to the Deloitte House property it bought on Earlsfort Terrace in Dublin two years ago, with a view to redeveloping the entire site. The company is understood to have paid c. €20 million for the red-brick, five-storey 1970s building, called Garryard House at 25 Earlsfort Terrace, from the McGarrell Reilly Group. The property, extending to 16,000 sq. ft., is next door to Deloitte House, a 65,000 sq. ft. building on the corner of Hatch Street, overlooking the National Concert Hall. Iput acquired Deloitte House in 2018 for c. €60 million in an asset-swap deal with the property’s then owners, State Street Global Advisors (SSGA). While SSGA and the McGarrell Reilly Group had previously joined forces and secured planning permission for a new 190,000 sq. ft. development on the corner plot, to more than double its current floor space, it is understood that Iput now plans to seek revised planning. The Irish Times, 8th October
Office Sector, Dublin Office letting activity experienced a considerable boost in Q3, with c. 425,174 sq. ft. of space taken, 60% more than in Q2. Dublin 2, the traditional core of the office market is set to benefit the most, with c. 50% of forecast total take-up for 2021 to be in Dublin 2. Buildings in the area have, on average, accounted for just over a third (35%) of total annual space let in the overall market over the last ten years. Two large deals already agreed may close by the end of the year. Between them, KPMG’s agreement to take Harcourt Square for its new headquarters and TikTok’s agreement to occupy the Sorting Office equate to c. 500,000 sq. ft. Some 73% of the space completed in the office market in Q3 is in Dublin 2, with the completion of just over 134,549 sq. ft. at Fitzwilliam 28, which is pre-let to Slack, the largest building to complete in the market this quarter. An additional 145,000 sq. ft. at Fitzwilliam 27 is due to complete by year end. TMT and professional services companies took 51% of the total space let in Q3, once again in line with the longer-term trend in the market. Such recovery is not without its challenges, with inflationary pressures of the most immediate concern. Both labour shortages (leading to higher wages) and price increases on materials are having an impact on the construction sector and on overall commercial building costs, which is expected to feed into upward pressure on rental levels in the office market in 2022 and 2023. The removal of the requirement to work from home from October 22 will allow companies to implement their hybrid or preferred working models. The Business Post, 10th October
Drogheda, Co Louth QRE Real Estate Advisers has been appointed to handle the sale of Boyne Tower, a high-profile modern office building in Drogheda, Co Louth, guiding in excess of €1.35 million. The property is a five-storey over basement building extending to c. 23,497 sq. ft. GIA. The offices are fitted out to a Grade A standard, with two retail units at ground floor level presented in shell and core specification. There are flexible open plan floor plates with floor-to-ceiling heights of c. 2.8 metres and full height windows with views of the river Boyne. Boyne Tower is positioned adjacent to the river, in central Drogheda, c. 2.5 km from junctions 9 and 10 on the M1 motorway and c. 25 minutes from Dublin Airport. The building is let to Outsource Support and IT Governance, with a mast let to Three Ireland, at a total passing rent of €87,340 per annum. There is an opportunity to increase the rental income to over €200,000 per annum upon letting of c. 11,818 sq. ft. of vacant office and retail space. The property represents a genuine asset management opportunity, with the potential to generate a yield of c. 13.5% upon leasing of the vacant space. The Business Post, 10th October
North Docklands, Dublin 1 Hibernia REIT plc has sold two offices in Dublin’s north docklands to German investor Commerz Real AG for €152.3m. In July 2014 Hibernia purchased the buildings, now known as One and Two Dockland Central, for €90.8m and invested a further €21m in refurbishing and expanding the accommodation before reletting it. The €152.3m sale price gives Hibernia an ungeared return of more than 12%, marginally ahead of its book value. It also reflects a capital value of €1,032 per sq. ft. for offices. Net sale proceeds are to be reinvested in Hibernia’s substantial near-term development pipeline such as Clanwilliam Court which is expected to commence in early 2022 and Harcourt Square which is expected to commence in 2023. Commerz Real is buying the offices for its open-ended real estate fund, hausInvest, and will receive a net initial yield of 4.75%. The property was constructed in 2000 and is situated on Guild Street in Dublin’s north docks. It consists of 147,500 sq. ft. of office accommodation across two adjoining blocks with parking spaces for 144 cars and 167 bikes. It is fully let to a range of occupiers, primarily from the technology, banking and capital markets and state agency sectors, with contracted rental income of €8m per annum or an average office rent of €51 per sq. ft. Leases average two years to next rent review and have more than seven years’ term certain remaining. The Irish Independent, 7th October
Dublin Airport The Dublin Airport Authority (DAA) has completed phase 1 of Dublin Airport Central located directly opposite Terminal 2. The completion of Two, Dublin Airport Central, a six-storey, 105,002 sq. ft. Grade A office – brings the construction of phase one of Dublin Airport Central to completion. Dublin Airport Central first launched in 2016. Since then, Buildings One and Three have been let to ESBI, Kellogg’s and DAA. Incoming tenants include the Dublin Fingal Chamber of Commerce and a new food and beverage offering called Vivika. Planning has also been obtained at Dublin Airport Central for two additional office buildings (blocks Four and Five – phase two) extending to a combined 250,000 sq. ft. along with a new multi-storey car park. Two, Dublin Airport Central has attained Leed Gold and BER A3 and Platinum Wired Score accreditations, along with Grade A related enhancements. The Business Post, 10th October
Douglas, Cork Site development work has started for a €150m-plus new homes development by PLC developers Cairn, on a valley site on the edge of Cork’s Douglas village, close to a new school being built by BAM. Called Bayly, the 472-units scheme on the Carrigaline Road at Castletreasure is 2015-founded Cairn PLC’s first scheme in Cork, having acquired several sites in Ireland via a €503m Ulster Bank portfolio sale with Lone Star, Project Clear. Cairn PLC got planning approval in October 2019 via a Strategic Housing Development (SHD) application with Meitheal Architects for this Castletreasure site, after an oral hearing looking at some issues such as stormwater management. The planning grant — one of the larger in the Cork area in recent years — is for 234 semi-detached and terraced houses, 160 apartments and 78 duplexes, with 4.4 ha of parkland and amenity space. The Irish Examiner, 6th October
Adamstown, West Dublin Irish housebuilder Quintain has turned the sod on its €500 million urban hub investment in Adamstown, west Dublin, commencing construction on a 279-unit apartment development aimed at the build-to-rent market. UK grocer Tesco has also signed up as an anchor tenant at the development. Called The Crossings, Quintain’s first phase of development at the new urban centre in Adamstown will include 279 apartments and more than 91,000 sq. ft. of space to house two major supermarkets, 20 retail units and five restaurant outlets, along with a multi-storey car park. Construction of the apartments has a completion date of mid-2023. Planning permission for a second phase of 185 apartments has been granted and further phases are planned for submission in late 2021 and early 2022. On the retail side, Tesco has signed a lease for a 40,000 sq. ft. store, which is set to open in January 2023, with a second leading supermarket anchor store set to open at the same time. The Irish Times, 6th October
Brennanstown Road, Cabineetly A site on Brennanstown Road, in the south Dublin suburb of Cabinteely, has come to the market seeking €8.5 million. The 3.15 acre (c. €2.7m per acre) site is currently occupied by three houses, positioned on large individual plots. According to selling agent Savills, the residentially zoned site benefits from a feasibility study, which could provide a developer with a prime residential development in a much sought-after location. The study suggests the site could accommodate 122 apartments laid out across four blocks, to provide a balanced and contemporary scheme all centred around a central courtyard and green area. The proposed blocks will provide a mix of units, with two-beds accounting for c. 60% of the proposed development. The Irish Times, 6th October
Marianella Development, South Dublin The listed housebuilder Cairn Homes has agreed to sell the last phase of its upmarket Marianella development in Dublin 6 to Hines European Core Fund for just over €60 million. The 107 apartments are being sold as a build to rent or private rented sector (PRS) investment. Cairn has previously marketed Marianella to owner occupiers and has sold 230 homes at the site to individual purchasers. It first signalled a move to PRS for the last phase when it sought a change of planning from 24 houses to 107 apartments in 2018. The yield on the investment is estimated at below 4%. At an average cost over €600,000, the apartments will be pitched at the high end of the market. Cairn purchased the former Redemptorist monastery for €42 million from the religious order in 2015, outbidding eight rival developers. The first two phases of the development were largely sold to downtraders from large houses in the area. Cairn’s focus is first-time buyers. It has sold over 4,900 new homes, including 3,100 starter homes since 2016. The Sunday Times, 11th October
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Project Arrow: Cerberus have been chosen by NAMA as the preferred bidder for the c. €6.25bn Project Arrow, which consists of 302 debtor connections secured by 1,906 assets. The fund is believed to have bid c. €800m for the loan portfolio, for which 97.5% of the loans are non-performing. The initial par value of the portfolio had been €8.4bn, however this reduced to €6.25bn following asset sales, loan refinancings and loans retained by NAMA. NAMA retained a number of loans secured by development sites as it has been mandated with funding the development of 20,000 residential units by 2020. CoStar Finance, 23rd October
Project Clear: First round bids have been received for Ulster Bank’s Project Clear, with all bids significantly below the €650m guide price. As many as 10 parties are understood to have submitted bids for the portfolio, including Cerberus, Hines and Cairn Homes. The portfolio consists of prime development land in Dublin and Cork. With the portfolio split into three tranches, interested parties can bid for individual tranches or the entire portfolio. Bids for the full portfolio were all believed to have been under €500m. The Sunday Times, 25th October
Project Jewel: Hammerson has been provided with a €1bn revolving credit facility to assist with the purchase of their share in NAMA’s Project Jewel. The €1bn facility reflects an 81% LTV based on Hammerson’s €1.23bn share of the €1.85bn purchase price. The facility was provided by five banks; BNP Paribas, Lloyds, JP Morgan, HSBC and Deutsche Bank. Hammerson intend to refinance the facility via asset disposals and capital markets issuances. In the past week Hammerson issued a GBP£350m bond which pays a coupon of 3.5%. Hammerson then entered into a Euro swap for the nominal amount and coupon payments, resulting in a net coupon cost of 2.5%. Real Estate Capital News, 21st October
One Spencer Dock: NAMA will be expecting significant interest from institutional investors when One Spencer Dock goes on the market in the coming weeks. Joint agents Savills and CBRE have been chosen to sell the property in Dublin’s North Wall Quay, for which the guide price is expected to exceed €240m. The 226,624 sq. ft., nine storey property was developed in 2007 by Treasury Holdings and let to PWC on 25 year leases, with upward only rent reviews every five years. PWC is believed to be paying annual rent in excess of €11m, equivalent to c. €50 psf. The Irish Times, 21st October
Commerzbank House: Hibernia REIT has chosen BNP Paribas Real Estate to act as the letting agent for One Dockland Central (formerly Commerzbank House) in Dublin’s IFSC. The property is currently being refurbished with a completion date of Q1 2016. Upon completion it is expected to rent for a minimum of €45 psf. Hibernia purchased One Dockland Central, along with Guild House for over €90m in July 2014. It is believed that Hibernia’s long term plan is to refurbish both buildings in order to create over 140,000 of lettable, grade A office space. The Irish Times, 21st October
Connacht Hotels: The Hanly Group have chosen Savills to sell two four star castle hotels in Connacht for a combined €8m. Kilronan Castle is an 84 bed hotel on a 40 acre estate with a guide price of €4.5m. Lough Rynn Castle is a 44 bed hotel on a 300 acre lakeside estate which has a guide of €3.5m. The hotels are being offered for sale either on an individual or joint basis and are both trading strongly. The Irish Independent, 22nd October
Windsor House: The co-owners of the Merrion Hotel in Dublin, Hastings, have been granted planning permission to develop the tallest hotel in Ireland. Hastings are to redevelop Windsor House in Bedford Street, Belfast into a luxury 200 bed hotel. The 24 storey building is to also include 16 serviced apartments, office space and ground floor retail units. The total cost of the project is estimated at GBP£30m. Hastings purchased Windsor House from NAMA in May 2015 for £6.5m. The Irish Times, 21st October
Sackville House: Tetrarch Capital have sought planning permission from Dublin City Council to convert Sackville House in Dublin 1 into a budget boutique hotel. Sackville House is currently a c. 27,000 sq. ft., three storey block and the estimated cost of Tetrarch’s project is €16m. Tetrarch purchased the property last year for €4m. Should planning permission be granted, Tetrarch hope to open the hotel before the end of 2017. The Irish Times, 21st October
Cork Development: Savills are seeking offers in excess of €5.75m for a part two-storey property on a 0.8 acre site on Washington Street in Cork City. The property has been occupied by Square Deal Interiors for the last few decades. However the owners have now decided to retire. Potential redevelopment opportunities include residential or educational facilities, with UCC in close proximity. Also close to the site is the former Esso petrol station, which recently sold for €3.5m with planning permission for 50 residential units. The Irish Examiner, 22nd October
Abbey Glen: Knight Frank are guiding €8.5m for 44 apartments in Cabinteely, Dublin 18. The complex consists of 13 one beds, 26 two beds and five three bed apartments. Seven of the units require investment before they would be suitable for letting. The gross annual rental income of the complex at present is c. 441k. With all 44 units finished and occupied, the gross annual rental income is believed to be c. €656k. The current sale price reflects a price of less than €200k per unit and a gross yield of c. 7.38%. The Irish Independent, 22nd October
Barrow Street: Offers in excess of €2m are being sought by Savills for a part two storey warehouse on 0.23 of an acre at 15 Barrow Street, Dublin 4. The property is most likely to be considered a redevelopment opportunity with the warehouse most suited to an open plan office or fitness centre. The property has residential zoning and there is an expired planning permission for eight mews houses and 6,458 sq. ft. of light industrial or general media use. Post completion of the sale, the current owners, Dublin Sanitary Disposal Ltd, are to occupy the property under a short term lease at €100k p.a. The Irish Times, 22nd October
Facebook Data Centre: Facebook have been granted planning permission by An Bord Pleanala for their proposed €200m data centre in Clonee, Co. Meath. Development of the data centre is expected to be completed over two phases. The first phase will see the development of two data centres with a combined gross floor area of c. 538,000 sq. ft. The second phase will see the construction of a third data centre with a gross floor area of 273,000 sq. ft. The Sunday Business Post, 25th October
Property Index: The latest figures from JLL’s property index reflect the continued strong performance in the commercial property market, with overall returns up by 7.7% for the third quarter. The sector has generated a positive return of 25.9% over the past twelve months. Capital values rose by 6.1% for the quarter and 18.1% for the year, with retail values showing the strongest growth in the quarter at 8.6%. Values have now risen by 46.2% since the bottom of the market, however they remain 47.7% below their peak value in 2007. The Irish Times, 21st October
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Project Arrow: NAMA is expected to select the preferred bidder for its Project Arrow loan portfolio next week after final bids were submitted last week. The final round bidders are believed to be Cerberus and Apollo, after a joint bid between Goldman Sachs and CarVal was withdrawn last month. The loan portfolio originally had a par value of c. €8.4bn, however this figure has now fallen to c. €6.3bn. The portfolio is expected to sell for c. €900m, equivalent to 14c on the Euro. Both Cerberus and Apollo are believed to have already spent c. €5m undertaking due diligence on the portfolio. NAMA Wine Lake, 18th October
Fenward House: CBRE are guiding €5m for a prime, fully let office property in Sandyford, Dublin 18. Fenward House comprises 19,750 sq. ft. of lettable space with an additional 34 car spaces. Slainte Technologies occupy the property on a ten year lease from June 2015. The existing rent of c. €389.5k p.a. is subject to automatic increases to c. €409k p.a. in June 2016 and c. €429k p.a. in June 2017. A €5m sales price will see the initial yield rise from 7.5% to 8.2% following the increases in rent. The Irish Times, 14th October
Blackrock Offices: Lone Star have retained Savills to sell three office properties in Blackrock Business Park in south Dublin for over €13.5m. The properties, known as Blocks 3, 4 and 5 have a total floor area of 50,000 sq. ft., are fully let and have a WAULT based on lease breaks of c. 4 years. The portfolio is generating rental income of c. €1.016m p.a., with Hair Restoration Ltd paying c. 35% of the existing rent. As two of the three office blocks are let on rents of €19.80 psf, there is strong potential to increase the rental income from upcoming rent reviews. The Irish Times, 14th October
Airbnb HQ: Savills are guiding in excess of €30m for Airbnb’s new HQ at 8 Hanover Quay, Dublin 2. The 38,471 sq. ft. property is still under construction but it is hoped that work will be completed by February 2016. Airbnb Ireland have agreed a 20 year lease on the property, with a tenant break option after year seven. The initial rent of €1.475m p.a. will rise to €1.7m p.a. in 2021 and is also guaranteed by Airbnb Inc. At a valuation of €30m, the net initial yield is 4.71% and the capital value equates to €780 psf. The Irish Times, 14th October
Carton House: NAMA have placed a price tag of c. €55m on Carton House in Kildare. The four star, 165-bed hotel boasts a c. 1,100 acre parkland estate and golf course and is a popular choice for sports teams, with the Irish rugby team using the hotel for training camps. The hotel was developed in 2000 by Paddy Kelly and the Mallaghan family. The most recent accounts for the hotel, from 2013, show losses of c. €1.83m for the year on turnover of c. €16m. The Sunday Business Post, 18th October
Tara Towers Hotel: Joint agents DTZ Sherry Fitzgerald and Savills are inviting offers in excess of €9m for the Tara Towers hotel and an adjoining c. 1.4 acre site on Merrion Road in Dublin 4. The three star, 111-bed hotel and site were previously purchased by Bernard McNamara and Jerry O’Reilly in 2003 for c. €14.2m. The hotel is in good condition with the majority of the rooms having been refurbished in recent years. Additional income is generated from mobile phone masts on the roof of the building and two car parks. The sale will appeal to both hotel investors and property developers as the site is ideally suited for the development of apartments. The Irish Times, 14th October
North Wall Hotel: Following his acquisition of a warehouse on Dublin’s North Wall Quay for c. €5m, property developer Paddy McKillen will reportedly seek planning permission to develop a new 150-bed hotel on the site. Oakmount, a company to which McKillen is linked, purchased the warehouse after a competitive bidding process where the initial asking price was €3.9m. It is anticipated that Oakmount now plan to spend c. €10m adding an additional four floors to the existing warehouse to facilitate the development of the hotel. The Irish Times, 14th October
Newhall: Newhall retail park in Naas, Co. Kildare is being sold through Savills, who are seeking offers in excess of €21.5m. The complex, which contains eight retail warehouses (145,366 sq. ft.) and 660 car spaces, was completed in 2005 by Grangemount Holdings. Tenants include Harvey Norman, B&Q and PC World / Currys. Newhall is currently generating rental income of c. €1.563m p.a., with Harvey Norman paying the highest rent at €508k. Included in the sale is a 2 acre site to the southwest of the park which could accommodate a further three retail units (24,000 sq. ft.), subject to planning permission. The Irish Times, 14th October
Finglas Social Housing: New Generation have withdrawn their planning application for 169 social housing units on Jamestown Road in Finglas, Dublin 11. The application was withdrawn after Fingal’s County Council unveiled a development plan for 2017 to 2023 which specifies an employment creation element. New Generation had already proposed the development of a nursing home and healthcare centre on the site but will need to revise the remainder of the application to ensure it meets the criteria for planning permission. The proposed development would have been the largest social housing development since the property crash. The Sunday Business Post, 18th October
53 Percy Place: Two unnamed investors have paid over €2m for a development site at 53 Percy Place in Dublin 4, well above CBRE’s asking price of €1.6m. CBRE believe that the c. 0.1 acre site has potential for a residential development or alternatively, a four storey office block. The value of the site post development is estimated at €7m. Underbidders for the site included developer Johnny Ronan, who has a stake in the nearby 8-34 Percy Place office block. The Sunday Business Post, 18th October
Kilcooley Estate: Northern Irish businessman Tom O’Gorman is hoping to make a gross return of over 120% in little over two years on his investment in Kilcooley Estate, Co. Tipperary. O’Gorman initially acquired the 35,000 sq. ft. mansion and c. 220 acres for c. €2.1m from NAMA. O’Gorman then purchased the freehold title on c. 950 acres of forestry for c. €1.5m which had been leased to Coillte. Now joint agents Savills and Christie’s International are guiding €8m for the mansion and c. 1,263 acres of land. The mansion has not been occupied for a decade therefore it should require c. €2m of refurbishment before it is suitable for living. The Irish Times, 15th October
BOI Branches: Murphy Mulhall are handling the sale of four Bank of Ireland branches which have a combined price tag of €8.75m. The properties are available for purchase individually or as one portfolio. Two of the branches are in Dublin and two are in Cork, with the prized asset being the Lower Rathmines Road branch in Dublin 6. The branch has a guide of €1.65m and rent of c. €104k p.a., a c. 6% yield. The properties are let under 25 year leases from 2007 and subject to upward only rent reviews, offering investors secure long term income from a strong covenant. The Irish Times, 14th October
Belgard Square Industrial: Two vacant industrial properties on an adjoining site in Belgard Square, west Dublin are being sold by selling agents William Harvey and Co for €6.75m and €5.5m respectively. The three storey, 98,846 sq. ft. Belgard House is available for €6.75m and was previously occupied by United Drug and Kerry Group. The €5.5m property is on a c. 4.2 acre site and was previously the industrial bakery of Cuisine de France. Harveys believe the €5.5m property is most suitable as a manufacturing premises or film / TV studio, subject to planning permission. The Irish Independent, 15th October
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Cornerstone Portfolio: Davidson Kempner have completed the purchase of the Cornerstone Portfolio for c. €118m. The portfolio consists of 150 apartments in Athlone and six shopping centres. The key shopping centre assets are Athlone Towncentre in Westmeath and a significant shareholding in MacDonagh Junction in Kilkenny. With the portfolio generating rental income of c. €8.8m p.a., the sale provides a net initial yield of c. 7.4%. Deutsche Bank are believed to have financed the transaction. The Irish Independent, 8th October
Tallaght Cross West: NAMA have appointed DTZ to handle the sale of a mixed use retail and multi-family apartment development at Tallaght Cross West in Dublin 24. DTZ expect the complex, which has a price tag of over €80m, to be generating rental income of €6.8m p.a. by the time the sale is completed. There are 442 apartments included in the sale, for which rent starts at €1,000 p.m. for a one bed. Aldi are currently occupying one of the retail units at c. €625k p.a., with a further 22 retail units to be made available for letting in due course. The complex was built by Liam Carroll of Zoe Developments in 2008. The Irish Times, 7th October
Apex Collection: HWBC have been chosen by a client of Irish Life to handle the sale of the Apex Collection, an office and industrial portfolio with a guide price of €19.7m. The prized element of the portfolio is two office blocks opposite the Ashtown Gate of the Phoenix Park, on the Navan Road in Dublin 15, priced at €9m. The properties have a floor area of c. 28,050 sq. ft., offer gross income of c. €689k p.a. and a WAULT of almost six years. Other office properties in the portfolio include two additional offices at 3 and 4 Richview Office Park in Clonskeagh, Dublin 14 priced at €2.1m. The industrial element of the portfolio comprises c. 181,500 sq. ft. of space at Westlink Industrial Estate near the Red Cow Junction and the M50, which has a guide price of €6.5m. The Irish Times, 7th October
SW3 Acquisition: SW3 Capital have paid over €30m for Eir’s offices and network management centre at Citywest Business Campus in west Dublin. Eir occupy the property, which includes c. 85,000 sq. ft. of office space, on a 25 year FRI lease from 2010, with no breaks. The lease includes upward only rent reviews every five years, based on an increase of 2.85% compounded annually. The current annual rent for the property is €1.933m. Prior to the acquisition, SW3 Capital had already spent more than €50m on investments in the Dublin market. The Irish Times, 7th October
An Bord Pleanála HQ: Joint agents DTZ and Finnegan Menton believe there will be significant demand for the HQ of An Bord Pleanála on Marlborough Street in Dublin 1. Offers in excess of €18m are being sought for the property. The 36,856 sq. ft. seven storey office block is fully occupied by the State tenant on a 25 year FRI lease from 2002. The current rent is c. €1,271k (€34 psf) p.a. and is subject to five yearly rent reviews. The property also contains 22 car spaces underground. The Irish Times, 7th October
South Mall: An office property at 89 – 90 South Mall in Cork is expected to sell for a minimum of €4.25m after being brought to the market through Savills. The 34,164 sq. ft. property is located in Cork’s Central Business District and has an annual rent roll of c. €338k. Tenants include KPMG, Fujitsu and James Riordan and Partners. There is also c. 5,189 sq. ft. of vacant office space, which should let for c. €15 psf if refurbished. The Irish Times, 7th October
Clarion Hotel: Dalata have completed the purchase of the Clarion Hotel in Cork City for €35.1m, significantly above the €30m guide price. The transaction will be viewed as an investment deal as the hotel will continue to be run by its existing operator, Choice Hotels, under a long term lease. The 191 bed, four star hotel was opened in 2005 and enjoys a prime location on the waterfront at Lapp’s Quay. The Irish Times, 13th October
Diamond Coast Hotel: Receiver David Hughes of EY has appointed Savills to sell the four star Diamond Coast Hotel in Co. Sligo, with a guide price of €3m. The 94 bed hotel is trading profitably and can be purchased without the existing management agreement. Savills advise that the hotel has become an attractive choice for weddings, partly due to its ability to cater for up to 450 guests. The hotel was only opened in 2007 and enjoys a prime waterfront location on Killala Bay. The Irish Independent, 8th October
Paramount Hotel: CBRE are guiding in excess of €15m for the lucrative Paramount Hotel and Turks Head in Dublin’s Temple Bar area. The three star hotel has 66 bedrooms as well as a very profitable bar and restaurant business. With the c. 40,902 sq. ft. hotel based on ten interconnecting four, five and six storey buildings on Parliament Street, there is significant potential to develop more bedrooms (subject to planning permission). Two floors of the hotel are used as a bar, restaurant and music venue. The Irish Times, 7th October
Drogheda Development: Laurence Goodman, son of Larry Goodman, has commenced the construction of 178 apartments in Drogheda, County Louth. The development consists of 113 two-beds, 40 three-beds and 25 one-bed apartments spread over eight blocks. A crèche and underground car park are also being constructed as parted of the development. NAMA Wine Lake, 11th October
Dalkey Site: Selling agents DTZ are to handle the sale of a prime c. 3.14 acre development site in Dalkey, south Dublin, which has a guide price of €5.75m. The site shares an access point with Castle Park School and is within walking distance of Dalkey and Glasthule villages. Rory Breen of DTZ advises the site could accommodate up to 50 apartments spread over two blocks. The site is located in an area whose primary zoning use is residential, however commercial uses are also possible. The Irish Times, 7th October
Xavier Court: Knight Frank have set an asking price of €7.8m on a block of 41 apartments known as Xavier Court in Dublin 1. The apartments are fully let and generating annual rental income of c. €626k. The average rents are €1,085 p.m. for a one-bed and €1,300 p.m. for a two-bed. With Knight Frank citing comparable market rates of €1,150 p.m. for a one-bed and €1,550 p.m. for a two-bed, there is scope to increase income in the short term in line with market rates. The Irish Times, 7th October
Adelaide House: Lisney are guiding in excess of €5m for the mixed-use Adelaide House development in Dun Laoghaire, South County Dublin. The fully let four storey property consists of 18 apartments and two office units on the ground floor. With a current rent roll of €310k p.a., there is potential to increase the rent in the short term through active management. The sales price also reflects a c. 20% discount on the cumulative value of the apartments if they were to be sold individually. The Sunday Business Post, 11th October
Housing Incentives: The Irish Independent reports that Environment Minister Alan Kelly is close to announcing a number of legislative changes aimed at aiding tenants and first time buyers. Under the new legislation, landlords will be required to give three months’ notice before a tenant is evicted while allowances will be offered to landlords who provide long term leases. Minister Kelly is also seeking to have up to 8,650 affordable homes completed in Dublin and Cork by the end of 2017, which would cost the taxpayer c. €180m. Under the scheme the government will target developers with land banks which can facilitate at least 50 new homes. Concessions will be provided to developers who provide increased volumes of homes at affordable prices. The Irish Independent, 8th October
NAMA Redevelopment: NAMA have sought planning permission to develop a new street in Dublin’s north docks, in a move which would pave the way for residential and commercial development. The proposed c. 330m street would link North Wall Quay with Sheriff Street Upper, turning Point Village into a separate block in the process. The application was submitted by the receivers to Wintertide, whom NAMA appointed in 2012. The proposed development is within Dublin’s Strategic Development Zone, therefore it can avail of the fast-track planning process. The Sunday Times, 11th October
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Project Clear: Ulster Bank is set to launch the sale of Project Clear, a loan portfolio secured by land banks which have a value in excess of €500m. The land banks are spread across Ireland and include sites in Dublin, Cork and Galway. The portfolio is to be sold in three tranches and prospective buyers will not be able to bid for the portfolio as one transaction in its entirety. The deadline for bids is expected to be before the end of October. The Sunday Business Post, 4th October
The Spire Portfolio: D2 Private, who earlier this year purchased Clerys department store in Dublin city centre, is believed to have been chosen as the preferred bidder for The Spire Portfolio. The portfolio has a guide price of €10m and consists of a mix of properties on O’Connell Street and Abbey Street. The mixed use properties have a total floor space of 40,000 sq. ft., with tenants including Ladbrokes and Londis. The properties are owned by Markland Holdings, whose debts are controlled by NAMA. The properties however, are not in receivership and the sale is being conducted on a consensual basis. The Sunday Times, 4th October
Cumberland House: Twitter are to move into Cumberland House in Dublin 2 after agreeing terms on a 20 year lease (break options in years 12 & 15) with Hibernia REIT. Twitter will occupy 85,000 sq. ft. of the 112,000 sq. ft. property while also leasing c. 140 car spaces. The total rent will be c. €4.6m p.a., with the office space being let at c. €50 psf. Hibernia acquired Cumberland House for c. €49m earlier this year and will spend up to €27m renovating the property before Twitter’s lease commences in H2 2016. The Irish Times, 1st October
New NTMA Offices: The NTMA have reportedly chosen to vacate their existing offices on Grand Canal Street in favour of the Project Wave site on Dublin’s North Wall Quay. Singaporean real estate firm Oxley and Sean Mulryan’s Ballymore Properties purchased the Project Wave site from NAMA in 2014. The new owners have recently lodged a planning application for c. 538,000 sq. ft. of office and commercial space as well as 250 apartments. The NTMA are expected to commence talks with the owners shortly and hope to move in late 2018 if a deal can be agreed. The Irish Times, 1st October
1 Grant’s Row: Aviva Life & Pensions have been chosen as the preferred bidder for a multi-let office building at 1 Grant’s Row off Lower Mount Street in Dublin city centre. The property fund are to pay c. €8.3m for the 15,244 sq. ft. property which is currently producing an annual rental income of c. €482k. There are currently four tenants in situ and the next rent review is in 2016. The property was sold by JLL under the instructions of receiver Ken Tyrrell of PwC. The Irish Times, 30th September
Radisson Athlone: CBRE are handling the sale of the four star, 128-bed Radisson Blu Hotel in Athlone on behalf of the receiver Kieran Wallace. While CBRE have not put a guide price on the hotel, industry sources believe the hotel will sell for c. €6.5m. The hotel was developed in 2004 and is in a prime location opposite Athlone Castle in the town centre. Trading has been strong for the hotel which has been kept in good condition in recent years. The Irish Times, 30th September
Clyde Court Hotel: The Clyde Court Hotel in Ballsbridge is to close at the end of the year after the owners, Chartered Land and the Abu Dhabi Investment Authority, exercised their break option in the lease. The hotel is to be replaced by 190 apartments, for which construction is to begin in early 2016 with the apartments available to purchase from 2017. The nearby Ballsbridge Hotel, which Chartered Land and the ADIA also own, will remain open until at least April 2018 after its operator, Dalata, extended the lease. The Irish Times, 30th September
Hotel Extensions: The five star Dylan hotel on Eastmoreland Place in Dublin 4 has sought planning permission for a 26 room extension, which would bring the total number of rooms to 70. The hotel was developed by Seamus Ross of Menolly Homes and the application was submitted by the operator of the hotel, Lyndonmount. Nearby The Fitzwilliam Hotel on St Stephen’s Green has also sought an extension to a previous planning application, which approved a 34 room extension of the hotel. The Sunday Times, 4th October
Whitewater Shopping Centre: Joint agents Savills and Coady Supple have been chosen to manage the sale of the Whitewater Shopping Centre in Newbridge, Co. Kildare. The c. 296,000 sq. ft. shopping centre, currently owned by Ballymore Properties and Elm Holdings, is expected to sell for over €150m. A sales price of €150m would reflect a net initial yield of c. 7.5%. The centre opened in 2006 and boasts more than 70 tenants, including Debenhams and Marks & Spencer.The Irish Times, 6th October
Irish Life: Irish Life has spent c. €19.2m acquiring two amalgamated shops at 57 / 58 Grafton Street in Dublin. Life Style Sports currently occupy the property and are paying rent of €675k p.a., which is guaranteed by the retailer’s parent company, Stafford Holdings Ltd. The investment will offer an initial yield of c. 3.4% once purchasing costs have been deducted. The four storey over basement building comprises 12,400 sq. ft. of floor space, of which over half is suitable for retail use. Irish Life has now spent c. €650m on Irish property over the past two years. The Irish Times, 30th September
Daft.ie Property Report: The latest house price report from Daft.ie shows the different trends in the Irish market over the past quarter. In Q3 2015, the average asking price in Dublin fell by 1.4%, while outside of Dublin the average asking price rose by 3.9%. The largest increases were recorded in Limerick city (7.7%) and Cork (6.8%). Daft.ie economist Ronan Lyons believes that the decrease in prices in the most expensive areas is reflective of the introduction of the Central Bank’s new mortgage lending criteria. The Irish Times, 6th October
11 Shrewsbury Road: Knight Frank are guiding €10.5m for Fintragh, 11 Shrewsbury Road. The 5,700 sq. ft. residential property is located on a c. 0.7 acre site and boasts an outdoor swimming pool and tennis court amongst its key features. With seven bedrooms upstairs, Fintragh would be attractive as a family home whilst also offering embassy potential. The Assaf family own the property through an investment vehicle, Pennyvale Property, having purchased Fintragh in 1987. The Irish Times, 1st October
CSO Property Prices: New figures from the CSO reveal that national residential property prices rose by 2.3% in August, representing the largest jump in a calendar month since last October. On a national level, residential prices have now risen by 9.5% in the past year. Property prices outside of Dublin grew by 10.8% in the past year, surpassing the 8.2% growth rate in Dublin. Despite this increase, prices remain 35% below their peak in 2007. Goodbody Stockbrokers estimate that the national average sales price for a property is now c. €215k, well below the average in Dublin of c. €288k. Economists believe that an improving economy and continued shortage of supply are the primary factors behind the continued increase in prices. The Irish Independent, 1st October
St Augustine Apartments: Savills are guiding in excess of €22m for 110 apartments at 42 – 76 St Augustine Street, Dublin 8. The guide price reflects an average valuation of €200k per apartment, with the block consisting of 77 two-beds, 21 one-beds and 12 three-beds. One of the most appealing aspects of the investment is that the entire block has been let to rental company Staycity, therefore the investment will require minimal asset management. Staycity are currently paying rent of €1.3m p.a., with eight years left on the lease. The Irish Times, 30th September
Commercial Market Overview: On a quarterly basis, the value of completed commercial property transactions (excluding loan sales) has fallen by almost 50% between Q1 2015 and Q3 2015. In Q1 2015 there were c. €1.03bn worth of transactions completed, decreasing to c. €665m in Q2 and c. €530m in Q3. Based on current figures, the total value of commercial property transactions in 2015 should fall short of the 2014 figure, when nearly €5bn worth of transactions were completed. The Irish Independent, 3rd October
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